WEEK 13 TUTORIAL QUESTIONS
CASH FLOW STATEMENT II
BASED ON LECTURE 12
Due Date: Week 13 (GP – Wed, 25/10/17; CAB – Thu, 26/10/17)
PRACTICAL QUESTION (18 marks)
Fast Feet Couriers Limited’s Balance Sheets as at 30 June 2016 and 2017 were as follows:
|Fast Feet Couriers Limited’s Balance Sheet as at 30 June|
|Provision for Doubtful Debts||(21,000)||(20,000)|
|Accumulated Depreciation – Buildings||(75,000)||(50,000)|
|Plant & Equipment||300,000||280,000|
|Accumulated Depreciation – Plant & Equipment||(70,000)||(45,000)|
|LIABILITIES AND OWNERS’ EQUITY|
|Accrued Wages (Wages Payable)||60,000||40,000|
|Provisions – Other Operating Expenses||0||20,000|
|Current Tax Payable||7,500||3,000|
|Zero-coupon debenture (Non-Interest Bearing Loan)||229,500||200,000|
|Asset Revaluation Reserve||20,000||0|
|TOTAL LIABILITIES AND OWNERS’ EQUITY||1,127,000||1,099,000|
The company’s Income Statements for the year ended 30 June 2017 and general ledger revealed the following information:
|Fast Feet Couriers Limited’s Income Statement|
|for the year ended 30 June 2017|
|Cost of Goods Sold||160,000|
|Gain on Sale of Equipment|
|(Carrying Amount: $50,000)||20,000||180,000|
|Other operating expenses||40,000|
|Depreciation Expense – Buildings||25,000|
|Depreciation Expense – Plant & Equipment||35,000|
|Doubtful Debt Expense||2,000|
|Net Profit Before Tax||16,200|
|Income Tax Expense||9,000|
|Net Profit After Tax||7,200|
- Fast Feet Couriers classifies interest as operating cash flow.
- Fast Feet Couriers issued $10,000 in bonus shares.
- The company measures its plant & equipment at fair value.
Using the direct method, complete the schedule below. Use the results from last week to complete the Operating Cash Flow section. You are now required to prepare the entire Cash Flow Statement for the year ended 30 June 2017 in accordance with AASB 107. You may use the reconstruction of the T-accounts or formula method or both. Show all workings.
FAST FOOT COURIERS LIMITED
|Cash Flow Statement for the year ended 30 June 2017|
|Cash flows from operating activities|
|Cash receipts from customers|
|Cash paid to suppliers & employees|
|Cash used in operations|
|Income taxes paid|
|Net cash used in operating activities|
|Cash flows from investing activities|
|Net cash from investing activities||0.5 marks|
|Cash flows from financing activities|
|Net cash from financing activities||0.5 marks|
|Net increase in cash and cash equivalents||0.5 marks|
|Cash and cash equivalents at beginning of period||0.5 marks|
|Cash and cash equivalents at end of
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